Type and Duration
FFF-Förderprojekt, March 2024 until January 2025Coordinator
Banking & Financial Market LawMain Research
Business LawDescription
In October 2020, the Liechtenstein government launched an ambitious legislative project. By January 1st 2025, a new banking and financial markets law shall enter into force and align the legal framework with the latest European legal requirements. The reorganisation of Liechtenstein's financial market law is one of the most important legislative projects of recent years. It raises several legal questions that will be comprehensively analysed as part of the research project.The primary focus of the legislative project is the Banking Act (Bankengesetz - BankG), the original version of which dates back to 1992. The provisions on prudential requirements of investment firms, the provision of investment services and investment activities as well as the rules on trading venues will be transferred to independent special laws and the Banking Act will be comprehensively reformed. At the same time, the new laws serve to implement current EEA legislation. The project aims at significantly reducing the complexity of banking and financial markets law in Liechtenstein in order to make it more accessible to market participants.
The research project will analyse, among other things, what specific changes the reform holds for market participants and how the new financial markets law fits into the European legal framework. Against this background, the reform project will also be analysed from a comparative law perspective, with the Austrian implementation in particular being used as a benchmark.
Practical Application
In recent years, the Liechtenstein financial market has grown strongly and has become a central pillar of the country's economy. As a result, financial market law is also of direct importance to more and more entrepreneurs and companies. With the reorganisation of Liechtenstein's financial market law, which is the subject of this research, the legislator intends to align the legal framework more closely with EEA law and simplify it for legal practitioners. To this end, the Liechtenstein legal framework is being thoroughly revised.The enactment of a new legal framework is, however, accompanied by novel legal questions. The scientific review of the legislative project as part of the research promotes legal clarity and legal certainty in Liechtenstein. Discussions with companies and public institutions will also provide practical guidance for the interpretation and application of the new provisions. The research results will be made available to legal practitioners in the form of a conference (Liechtenstein Banking Law Forum) and a conference volume.
Reference to Liechtenstein
The Liechtenstein financial market is of central economic and social importance for the country. A coherent, clear and user-friendly financial market law is the basis for competitiveness and further development of the financial sector and the economy. It is also a prerequisite for implementing innovations in the areas of digitalization and sustainability. At the same time, financial market law is heavily influenced by the increasing number of EEA legal acts, which are being amended at an ever-increasing pace. With the reorganisation of the financial market law, the legislator aims to adapt the legal framework to new European legal requirements and simplify it at the same time.The scientific review of the comprehensive revision can make a significant contribution to increasing legal certainty in Liechtenstein and ensuring that European and national regulations interact frictionless. On the one hand, scientific guidance can support legislators in further improving the legal framework for future reforms and aligning it even better with the needs of market participants. On the other hand, the key results of the project will be presented in autumn 2024 at a symposium organized by the professorship (Liechtenstein Banking Law Forum) and discussed with companies and public institutions. This will provide practical guidance to entrepreneurs and companies. The objectives of the research project are in line with the government program 2021-2025, which provides for the continuous adaptation of the financial market law framework to the requirements of the market, taking into account international developments and enabling digital and sustainable innovations.
Keywords
Stock Exchange, Banking and Financial Markets Law, Banking Regulation, Investment Services
